Disney to crack down on password-sharing after CEO Bob Iger wins board fight

Walt Disney’s streaming service will begin cracking down on password-sharing from June, Chief Government Bob Iger mentioned Thursday, because the leisure conglomerate appears to be like to spice up subscriber progress and make the enterprise worthwhile.

Iger additionally signaled a necessity for consolidation within the streaming trade and mentioned Disney was “finally” double-digit margins for the enterprise, in a wide-ranging interview with CNBC.

Streaming rival Netflix’s password-sharing crackdown had helped it add almost 22 million subscribers within the second half of 2023 and shatter Wall Avenue expectations.

CEO Bob Iger mentioned there was a necessity for some consolidation within the streaming trade. AFP by way of Getty Photographs

The interview got here only a day after Disney investors backed Iger and other company directors, defeating a marketing campaign by activist buyers together with Nelson Peltz who argued that Disney had underperformed within the streaming-television period.

“The proxy vote was a decisive, true endorsement of the board,” he mentioned, noting the corporate was taking the topic of CEO succession – a key concern of shareholders – “very significantly.”

The win strengthened Iger’s hand at an important time. Disney is making an attempt to reinvigorate its movie and tv franchises, make its streaming unit worthwhile and discover companions for constructing sports activities community ESPN’s digital future.

In the meantime, in an interview with CNBC simply minutes after Iger’s, Peltz mentioned he hoped that the Disney CEO can maintain his guarantees.

“In the event that they do it, they received’t hear from me once more,” Peltz mentioned.

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Activist buyers together with Nelson Peltz argued that Disney had underperformed within the streaming-television period. HTGanzo – inventory.adobe.com

Iger additionally addressed criticism by billionaire Elon Musk, who backed Peltz and had lashed out in opposition to advertisers together with Disney with a profanity-laced tirade in November for fleeing social media platform X on considerations over antisemitic content material.

“I ignore it,” Iger mentioned of Musk’s criticism.

Disney shares have been up about 0.7% greater in morning commerce. They’ve risen about 30% up to now this yr, making them the highest performer on the blue-chip Dow Jones Industrial Common.

Iger mentioned on Thursday that talks have been happening for the strategic accomplice for ESPN.

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